South Africa’s Nashua Mobile has announced it is to sell its Cell C subscriber base to Allied Electronics (Altron) subsidiary Autopage Cellular for ZAR91.5 million (US$8.8 million) excluding VAT, amidst inadequate returns.
HumanIPO reported last month Nashua Mobile was selling its Vodacom and MTN subscribers back to the operators for ZAR2.26 billion (US$217 million) excluding VAT.
“After careful consideration, the boards concluded that it is unlikely that this business would generate acceptable returns. Accordingly, agreements with the Purchasers for the MTN and Vodacom subscriber bases have been concluded,” parent company Reunert said in a statement.
The latest deal will see Autopage pay 50 per cent of the total amount on the day of handover, followed by the balance in the ensuing six months.
The deal is subject to approval by the Competition Commission.
